STAMFORD -- The Zoning Board has agreed to review Building and Land Technology's plan to construct a 6-acre boatyard in Shippan, putting in motion the long-awaited approval process to build an office headquarters for hedge fund Bridgewater Associates on a contested South End peninsula.

At the urging of the Pavia administration, board members decided Monday night to officially acknowledge BLT's zoning application for a boatyard at 205 Magee Ave. BLT initially submitted the plan last September as a 3.5-acre boatyard in a bid to replace a historic and protected boatyard the developer razed last year on a 14-acre peninsula in the South End.

In August, it was revealed BLT was proposing to redevelop the site into an 850,000-square-foot office for Bridgewater.

The city's land-use bureau initially refused to review the application, noting the boatyard's access to the water was tied to a city-owned strip of property BLT had not yet obtained permission to use. City officials said they were also awaiting a report from a boatyard consultant commissioned to compare BLT's plan with the former boatyard. Among the consultant's conclusions was that the proposed boatyard lacked sufficient storage for large boats.

As part of a deal announced two weeks ago by Mayor Michael Pavia, BLT has expanded the footprint of its boatyard with a pending license agreement to use the 4,200-square-foot waterfront parcel detailed in its original plans as well an additional 2.4 acres of city land behind the Water Pollution Control Authority. In return, BLT has agreed to provide the city with $5 million worth of public improvements, including a $2 million animal shelter.

On Monday, Zoning Board members were emailed a draft copy of the agreement, which details BLT's obligations to the city. Under the agreement, the license will be for 10 years, with three five-year renewal options for BLT, provided the developer fulfills its commitments.

Boaters and others opposed to displacing the boatyard have challenged the deal's legality. The administration, including the city's law department, has asserted the mayor is not required to obtain board approval to execute a license agreement. Boaters have pointed out that a license agreement, especially one with such a lengthy term, essentially amounts to a lease. Under the City Charter, both the lease and sale of city land require sign-offs from three city boards -- the Planning Board, the Board of Finance and the Board of Representatives.

The administration has tried to put the concerns to rest by saying Pavia nonetheless intends to pursue approval from all three boards. During his news conference last month, Pavia said his plan was to "engage" the city's main legislative bodies.

In a Monday interview, the mayor was more specific, saying all three boards would have to consent to the deal for it to be approved.

"It's all or nothing," he said. Calling the agreement, which would also involve a land swap, "the most complicated land-use proposal that I've ever heard about," he added, "It is a process whereby everybody weighs in."

Ultimately, however, the deal with BLT hinges on Zoning Board approval of the boatyard plan.

During Monday's meeting, board member Audrey Cosentini questioned the validity of having the zoning process begin before the deal is completed.

The mayor, she argued, "has no authority over conveying that land through license or letter of intent until he has gone through the Planning Board, Board of Finance, and Board of Representatives, something which he admits has to be done."

The administration has said that both zoning approval of the boatyard plan and legislative approval of the license agreement can be pursued concurrently.

Corporation Counsel Joseph Capalbo, speaking before the board, told members they were responsible for land use, not business decisions. He added: "There are (zoning) applications submitted every day where entire terms have not been effectuated or put into writing."

Cosentini also asked the city attorney whether the waterfront parcel owned by the city was in fact a park.

According to multiple city documents, the waterfront strip was acquired as part of a broader land purchase in 2006 to create a park and waterfront walkway on a former industrial property. In 1999, city representatives approved the deal under the premise that $325,000 of the $500,000 sale cost would come from an open space grant from the state.

Under state law, land conserved as open space cannot be used for commercial purposes. But to date, the grant has never been tapped, leaving the property vulnerable to development interests.

Despite questions from Zoning Board members and city representatives, Capalbo has said he has not determined whether the land in question is in fact a park, saying the issue is "irrelevant."

"It won't matter," he said, "because a park requires three-board approval and we are going to get three-board approval."

According to the City Charter, city property of 20,000 square feet or less that is used for park purposes may only be sold or transferred after written approval by the mayor, the Planning Board, the Board of Finance and a two-thirds vote of the Board of Representatives.

However, some have argued the riparian rights that BLT is seeking from the city as part of its boatyard plan were also part of the original park purchase, bringing the total amount of parkland being sought by the developer to be more than 20,000 square feet. In that case, the Charter calls for a public referendum prior to any sale or transfer.

Asked if the riparian rights applied in this case, Capalbo said he did not know.

Norman Cole, the land-use bureau chief, said a public hearing can take place no sooner than 35 days after the city receives a zoning application.

Cosentini, a staunch critic of the boatyard plan who has not been reappointed by Pavia to the Zoning Board, warned that the board's decision did not in her mind mean that it was accepting the proposed license agreement as "being legitimate."

"We are just starting the process of the boards looking at (the application)," she said.